Solve the following LP Shelby Shelving is a small company that manufactures two types of shelves for grocery stores. Model S is the standard model and model LX is a heavy-duty version. Shelves are manufactured in three major steps: stamping, forming, and assembly. In the stamping stage, a large machine is used to stamp standard sheets of metal into appropriate sizes. In the forming stage, another machine bends the metal into shape. Assembly involves joining the parts with a combination of soldering and riveting. Since different amount of solder and rivets are used for assembly, they have different workstations.   Model S shelves are sold for $350 and model LX shelves are sold for $405. Shelby’s operation is fairly small in the industry, and management believes it cannot raise prices beyond these levels because of the competition. However, the marketing department believes that Shelby can sell as much as it can produce at these prices. Within a given month, Shelby has 1,200 hours of stamping, 1,200 hours of forming and 1,000 hours of assembly available.  Each model S shelf requires 0.3 hours for stamping, 0.25 hours for forming, and 0.5 hours for assembly. Each model S shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model S is $175 per unit.   Each model LX self requires 0.3 hours for stamping, 0.25 hours for forming, and 0.6 hours for assembly. Each model LX shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model LX is $210 per unit.  They want 60% of the production dedicated to model LX shelves

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question

Solve the following LP

Shelby Shelving is a small company that manufactures two types of shelves for grocery stores. Model S is the standard model and model LX is a heavy-duty version. Shelves are manufactured in three major steps: stamping, forming, and assembly. In the stamping stage, a large machine is used to stamp standard sheets of metal into appropriate sizes. In the forming stage, another machine bends the metal into shape. Assembly involves joining the parts with a combination of soldering and riveting. Since different amount of solder and rivets are used for assembly, they have different workstations.  

Model S shelves are sold for $350 and model LX shelves are sold for $405. Shelby’s operation is fairly small in the industry, and management believes it cannot raise prices beyond these levels because of the competition. However, the marketing department believes that Shelby can sell as much as it can produce at these prices. Within a given month, Shelby has 1,200 hours of stamping, 1,200 hours of forming and 1,000 hours of assembly available. 

Each model S shelf requires 0.3 hours for stamping, 0.25 hours for forming, and 0.5 hours for assembly. Each model S shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model S is $175 per unit.  

Each model LX self requires 0.3 hours for stamping, 0.25 hours for forming, and 0.6 hours for assembly. Each model LX shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model LX is $210 per unit. 

They want 60% of the production dedicated to model LX shelves.  

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 7 images

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

What are the controllable inputs from this example? What are the uncontrollable inputs from this example?

Shelby Shelving is a small company that manufactures two types of shelves for grocery stores. Model S is the standard model and model LX is a heavy-duty version. Shelves are manufactured in three major steps: stamping, forming, and assembly. In the stamping stage, a large machine is used to stamp standard sheets of metal into appropriate sizes. In the forming stage, another machine bends the metal into shape. Assembly involves joining the parts with a combination of soldering and riveting. Since different amount of solder and rivets are used for assembly, they have different workstations.  

Model S shelves are sold for $350 and model LX shelves are sold for $405. Shelby’s operation is fairly small in the industry, and management believes it cannot raise prices beyond these levels because of the competition. However, the marketing department believes that Shelby can sell as much as it can produce at these prices. Within a given month, Shelby has 1,200 hours of stamping, 1,200 hours of forming and 1,000 hours of assembly available. 

Each model S shelf requires 0.3 hours for stamping, 0.25 hours for forming, and 0.5 hours for assembly. Each model S shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model S is $175 per unit.  

Each model LX self requires 0.3 hours for stamping, 0.25 hours for forming, and 0.6 hours for assembly. Each model LX shelf costs $80 per hour to stamp, $120 per hour to form, and $165 per hour to assemble. The cost of materials for model LX is $210 per unit. 

They want 60% of the production dedicated to model LX shelves.  

Solution
Bartleby Expert
SEE SOLUTION
Follow-up Question

What are the uncontrollable inputs?  What are the controllable inputs?

Solution
Bartleby Expert
SEE SOLUTION
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education